How are crypto taxes calculated?

Crypto is typically taxed as property. When you sell, trade, or spend crypto, you trigger a taxable event. The capital gain or loss is calculated as the Sale Price minus the Cost Basis (Purchase Price + Transaction Fees).

What is the difference between short-term and long-term crypto gains?

Short-term capital gains apply to assets held for one year or less and are taxed at your ordinary income tax rate. Long-term capital gains apply to assets held for more than one year and benefit from lower tax rates (0%, 15%, or 20% in the US).

Are transaction fees tax-deductible in crypto?

Yes. Transaction fees (like exchange fees or blockchain gas fees) are added to your cost basis when buying and subtracted from your sales proceeds when selling, which effectively reduces your taxable capital gains.

Crypto Tax Calculator | Capital Gains Estimate

Crypto Tax Calculator

Estimate capital gains taxes on your cryptocurrency trades using current short-term and long-term tax regulations.

Purchase Price ($)

Selling Price ($)

Total Fees / Gas ($)

Holding Period

Income Tax Bracket (Estimated %)

Short-term gains are taxed as ordinary income. Long-term rates are capped lower (typically 15% for mid-brackets).

Tax Projection Summary

Projected returns after standard federal taxes.

Net Capital Gain

$2,950.00

Estimated Tax Liability

$649.00

Return on Investment (ROI) 58.4%

Net Profit After Tax $2,301.00

How Crypto Gains are Taxed

Cryptocurrency trades are viewed by revenue services (like the IRS in the US) as property, meaning transactions generate capital gains or losses. Estimating tax liabilities is essential to avoid surprises at tax time.

Calculation Breakdown

The core elements of a crypto tax transaction include:

Cost Basis = Purchase Price + Transaction Purchase Fees

Sale Value = Selling Price - Transaction Sales Fees

Net Capital Gain = Sale Value - Cost Basis

Estimated Tax = Capital Gain × Tax Rate Percentage

Gains are split based on holding duration:

Short-Term Gains: Assets held for 1 year or less are taxed at standard personal income tax rates (from 10% to 37%).
Long-Term Gains: Assets held for more than 1 year qualify for discounted tax rates. In the US, long-term capital gains are taxed at 0%, 15%, or 20% depending on total household income.

Crypto Tax Calculator

Tax Projection Summary

How Crypto Gains are Taxed

Calculation Breakdown

Frequently Asked Questions